Papa John's Shares Earnings Beat, Same-Store Sales Surge

Papa John's breached a key trendline during yesterday's trading

Deputy Editor
Feb 24, 2022 at 10:16 AM
facebook twitter linkedin

Papa John's Int'l, Inc. (NASDAQ:PZZA) just left the earnings confessional with fourth-quarter profits and revenue that topped analysts' estimates. The company's gross margin also improved despite recent labor shortages and commodity market issues, and its same-store sales rose over 11%. At last check, the stock was down 0.8% at $105.66. 

Papa John's stock has reclaimed most of this morning's steeper losses, amid the broad-market selloff, but is still on track for its seventh-straight daily loss. PZZA has been on a downward spiral of late, and breached the 320-day moving average during yesterday's trading, marking its first close below the trendline in nearly two years. The stock is clinging to a small year-over-year lead, though it has lost over 20% in 2022. 

Analysts have yet to comment, but most members of the brokerage bunch are bullish. Of the 14 in coverage, 10 say "strong buy." Plus, the 12-month consensus price target of $145 is a 38.7% premium to current levels. 

Short-term options traders, on the other hand, were extremely put-biased ahead of the event. This is per PZZA's Schaeffer's put/call open interest ratio (SOIR) of 1.50, which stands higher than 97% of readings from the past year. 



Special Offers from Schaeffer's Trading Partners